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tv   Markets Now  FOX Business  September 10, 2012 11:00am-1:00pm EDT

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coyote, i will fall off the cliff. charles: speaking of printing press, here they are, dagen and connell? connell: thank you, charles. i'm connell mcshane. dagen: i could buy, i don't know, a used vw. i'm dagen mcdowell. they are back. congress, but will those lawmakers do anything about the fiscal problems that many say will send us back into a recession? connell: don't answer that question. then a watershed moment maybe for the unions in america? we're going to talk about the chicago teachers strike. dagen: for the first time since we bailed out aig, the government, that means you will not be the majority shareholder in that company. it's the top of the hour. right now stocks now and every 15 minutes. nicole petallides on the floor
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at the new york stock exchange with again getting out of aig or trying to get out of it. nicole: right, dagen and connell. goes back to 08 the financial crisis and t government bailed out aig. today here what we're seeing is the u.s. treasury department is now planning to sell 18 billion dollars worth of stock. and then that moves them from a 53% share to a 20% share. that no longer a majority shareholder. this is a big deal for obviously american taxpayers and aig too. 1.7% is to the down side right now. i want to do a broad market check here for you right now. the major market averages are slightly to the down side. the s&p is down 1/10 of 1%. the nasdaq composite though is down a full half of a percentage point. but you have names hitting new highs like apple and google. back to you. dagen: thanks nicole. connell: here we go after a five week break, great news today, congress is back at it. absolutely. they have less than a month left in the fiscal year. dagen: rich edson in d.c. where
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many wonder if anything will ever get done. hey, rich. rich: a little sarcasm, mcshane? not on the 11:00 show. connell: no. [laughter] connell: carry on, rich. rich: congress is going to finish really nothing beyond what they absolutely must. government funding runs out october 1st so congress will likely pass an agreement they have already reached to avoid a government shutdown. the house will extend provisions of law governing surveillance in the united states. after their two weeks of work, lawmakers will likely only finish government spending, maybe disaster aid or benefits for needy families. it is very unlikely congress resolves anything on taxes, fiscal cliff, post office reform, or the farm bill. and a top house republican blames it on the senate and says it is all democrats. >> the u.s. congress has been working quite a bit. it's the u.s. senate that's been
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stopping everything. so we don't know how much comes to fruition, but we do know we will get things through the house, but when it gets to the senate -- [inaudible]. rich: democrats say it is the republicans fault. in an op-ed in politico, it says since president obama took office republicans have done little but obstruct and delay. democrats have offered their plans. republicans theirs. neither sees the political benefit of negotiating any of this until they know who wins in november. connell: rich, thank you. rich edson in d.c. for more, let's bring douglas holtz-eakin in, former cbo director, also in washington. it's almost a joke to us after a while, they are not going to get anything done, but is there anything -- is there a headline that we can say out of this session of congress say hey at least they did this or is it just aoss cause? >> well, one would hope they would in fact a government funding bill so we can avoid any sort of fight on a shutdown.
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that strikes me the least we could expect out of them. it would also be very useful if they took on some of the traditional roles of oversight. you know, for example, i think it's been 80 odd years since we failed to pass a defense authorization bill which means we have looked at the defense department, authorized the programs it's undertaking. that's not happened in the senate yet this year and i think that's just a striking omission. and of course the big thing is the fiscal cliff. evidently they are not going to be able to get it together and try to deal with that, but every day they don't, i see the economy damaged. we're starting to see people being very nervous about the contractor cutbacks, very nervous about higher taxes, and that's not good news going into a weak economy. connell: my question becomes as you look at what's going on here with the fiscal cliff and when the expiration happens and the tax cuts and everything else, my question becomes what is the election going to change after all of this? everybody says after the
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election, we will do this x y z. how does it change anything, where if the republicans control a house or maybe two of congress, with the president re-elected, they are suddenly going to get along and start cooperating? >> you are committing common sense which gets in the way of thinking about politics i think. the reality is that after the election, whoever does well is going to want to kick to 2013 as much as they can. we know right now they are going to do very little in the lame duck. the very little bit they are going to do now, take the economy out of danger and move on. that's the difference between politics and common sense. we are in that situation. connell: isn't there a serious side of this where if you go back and read what s&p said when the credit rating was downgraded they did point out to the congress, it was dysfunctional environment in general politically, but basically read between it and say hey you guys are dysfunctional. you can't get things done. that didn't affect anybody? >> one would hope it would. there are really two things that are going to be the key test. number one, can the congress and
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the president decide to be good stewards of the economy between now and spring 2013? that doesn't mean they have to solve the big battle over the taxes or what the entitlement reforms look like, that means they have to do no harm. and then whoever is governing in 2013, they have six months to a year to make serious progress on our problems, and if they do not, then i think the rating agencies are going to say yeah, we're right the politics are so bad these guys can't fix their problems, so we'll get downgraded. connell: again. doug, thank you. we appreciate it. >> thank you. dagen: our next guest says the teachers strike in chicago will be a watershed moment for our country and this administration. connell: let's bring in the chairman and chief investment officer at cumberland advisors. he joins us now. what do you mean watershed moment? >> illinois -- of the 50 states, illinois is the least credit worthy. it's got the most unfunded pension percentage. it doesn't pay its vendors on time. and its largest city now faces a
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strike and a showdown with with the teachers union. are we going to see a leadership change in approach? is this a ronald reagan moment with the air traffic controllers, which turn things? or is it going to be more business as usual in a settlement? we're going to find this out. rahm emmanuel now has to face this down. is he obama's buddy? is he the mayor of chicago, the largest city in illinois? we're going to see. dagen: how do you think it plays out? you mentioned ronald reagan and the air traffic controller strike where reagan said okay strike, and essentially fired them all. it was a dramatic moment. the power of the white house. the power of the saying no to unions. but rahm emmanuel doesn't have that power. is it more symbolic simply because he's a democratic mayor and you've got a democrat facing off with the unions? >> i don't know. i think rahm emanuel is a newly-elected mayor.
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he's in office. the power structure is his power structure. now he has a showdown with 250,000 people. and either he says we can't pay you. we have to redo the economics of this deal. or he succumbs. if he succumbs, then there's no change. no watershed. it's business as usual and that means the economics of the city and the state get a lot worse. connell: when they are already bad. the fact that he's a democrat matters, though. if he's not their friend, i know he's a centrist democrat, but if he's not their friend, who is? >> there aren't any republicans in chicago anymore. so they are all democrats. the question is how do they divide? does he have the leadership? will he do it? he has the ability to do it. connell: right. >> he's got to face down a union. it is a very dramatic test. and it is a test not only for illinois and chicago because the whole country is focused on it because it is a big issue. dagen: how would that then play out assuming that rahm emmanuel gets somewhere with the teachers
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and win some concessions in negotiating their wages and other benefits and how they are rated? >> let's play both sides. no-showdown happens -- no showdown happens, union wins. you are a rating agency you look at this credit and say this is getting worse. the pension unfunding issue continues and then you can then assume about the rest of the state. take it the other way and say wait a minute, they finally decided to hunker down when you're in a hole, stop digging, they did it. now what happens? you start to view the credit differently. you start to see a turn in the economics. you start to see confidence come back. that's the test at stake right now. connell: it's a big story to watch out there. thank you david for coming in today. >> nice to see you. dagen: thank you very much. both candidates meantime, those running for president, continue to rake in loads of loot, but for the first time since april, president obama's campaign outraised g.o.p. nominee mitt romney. n august, president obama raised 114 million dollars.
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romney took in a little more than 111 million. this is the third straight month that the republican candidate has raised over 100 million. and bp selling some of its deep water oil and natural gas properties in the gulf of mexico to texas based planes exploration and production company. bp is selling off assets to pay for damages from the 2010 gulf oil spill. the estimated bp has already spent 22 billion dollars so far on clean-up. and payments to individuals and businesses impacted by that spill. the deal is expected to close at the end of the year. transocean also announcing today that it's reached definitive agreements to sell 38 shallow water drilling rigs to shelf drilling international holdings for just over a billion dollars. shares of both companies are -- well, you can see how they are trading. one up slightly and one down more than slightly. connell: new data is showing just how hard-pressed homeowners are in this election year.
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and both the candidates for the white house traveling to the hardest hit states with their message for voters. dagen: this guy has already won five nascar championships in a row. but jimmy johnson is chasing for another one. we're going to talk to him coming up later this hour. get fired up, people, get fired up. oil thankfully is not fired up today. [ male announcer ] what if you had thermal night-vision goggles,
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connell: all right. quarter past the hour. time is flying here. dagen: look alive. connell: nicole at the stock exchange for stocks now and every 15 minutes. you hear the woman, look alive, nicole. and talk about hp. nicole: we're looking here right now at hewlett-packard, a dow component on the move today because you may remember they said they were laying off about 8% of their workforce. well it turns out that the original number, they are going to lay off another 2000 more employees than they previously noted, so the headcount reduction will be about 29,000 people over the next two years.
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obviously the technology giant has been working on turning itself around. and what's interesting, hewlett-packard is doing so well, it's the best performer on the dow. today it is up 2%. but some of the other tech stocks, cisco, microsoft, are all to the down side. also intel as well is under pressure. the dow right now turned positive, up 12 points. back to you. connell: all right nicole. dagen: fannie mae reporting that sentiment about the housing market is improving but a new survey shows just how under water some homeowners are. connell: peter barnes in d.c. this has the attention, peter of both the president and mitt romney; right? peter: yeah, in the election year that's right. a new report shows that 18% of all homeowners making timely paints on their -- timely payments on their mortgages are under water. as of july their homes are worth less than the outstanding balance on their loans. that's millions of homeowners in this election year. but the problem is especially bad in several key battleground states. take a look at this: in nevada 55% are under water.
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florida, 33%. michigan, 30%. under water homeowners tend to get behind in payments or default and head into foreclosure more often than homeowners with some equity in their property. >> as we consider the relative stability that we've seen in home prices now, but, you know, the somewhat tenuousness of that. if home prices go lower, we could see new defaults going into the system and these states that have large distressed inventories could be subject to that. peter: but it's a little hard to tell how all of this is playing into the election and frankly we haven't heard the candidates really talk about this issue very much. nationally a gallup poll in may found that 74% of voters ranked home values foreclosures and mortgages as very or extremely important economic issues, but voters were split about evenly on which candidate could tackle housing problems better. but get this, in florida, on
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friday, romney launched new ads slamming the president over falling home values in that state, but a new york times poll last month found that just 22% of florida voters considered housing and foreclosure issue extremely important to their votes. dead last of seven issues polled. healthcare and the general economy came out on top in that poll. dagen and connell. connell: florida, romney's got to win florida. all right, peter barnes, thank you in d.c. dagen: thanks peter. general motors reporting record sales for its chevy volt, but the truth is the automaker is still losing big money on that electric car. connell: will voters vote on the economy as we were talking about or is it just about the individual candidate? some of the latest polls giving the president an edge now after the weekend in the race for the white house. we will be talking more about that. if romney only won florida he'd
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>> at 22 minutes past the hour i'm lauren green with your fox news minute. president obama's campaign won august raising more money than mitt romney for the first time in four months. the president raised 114 million dollars, a sharp jump from the 75 million in july. romney and the republicans raised 111 million which is his best one month total and the third straight month in which his campaign raised over 100 million dollars. a mayor of new jersey has been arrested as part of a corruption investigation. federal prosecutors allege mayor mack used his influence and collected money in connection with a proposed parking garage project which was actually part of a sting operation. mack's brother and another man also face charges. and catholics from all over new jersey have been flocking to an area of west new york to see the image of the virgin mary in the bark of the tree. thousands have turned out to see it causing police to put up
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barricades to better control the crowds. that's your fox news minute. i'm lauren green. now back to dagen and connell. dagen: thank you, lauren. connell: moving on to the innovate invest israel event today sponsored by the "wall street journal" kicking off actually this morning with a speech made by rupert murdoch the chairman and ceo of newscorp which is our parent company. dagen: adam shapiro is at the event which high lights investment opportunities in israel. adam: mr. murdoch was here this morning kicking things off he said that the path to global competitiveness runs through israel if you look at foreign direct investment 11 billion dollars last year and growing. in fact the israeli economy has been growing at roughly 3.8%. expected to slow a bit but still performing much better than economies like ours or even europe. and of course gdp per capita in israel is now on par with europe. so this is an economic success story that the israelis are very happy to talk about. one thing we will be talking about i'm going to throw it to some video here that shows you
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generic oil and gas exploration because you don't think of israel as oil exporter. warren buffett joked if you are looking for oil in the middle east, you go past israel. you don't even stop. but israel is on the verge of becoming an exporter of natural gas. couple of things about to happen in israel, first come 2013 they will begin taking delivery, offshore buoy depot which you can unload liquid natural gas. partnered with british petroleum. purchasing liquid natural gas. they also discovered gas field in israeli territorial waters which are so vast that the israelis come 2017 will be exporting natural gas. they will start harvesting gas from that field in 2013. we will be speaking with the ceo from israel natural gas about what this means not only for israeli security, but for investors who might want to get in on this. so that's all coming up here from the conference. back to you. connell: look forward to that. adam thanks.
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adam shapiro. dagen: a guest coming up has been named by forbes as its most influential athlete for two years running. oh by the way, he won five nascar championships in a row. mcshane, get fired up. connell: i am. dagen: jimmie johnson is here. connell: this will be great. dagen: i just hit you. connell: you did but that's what you do. then we will also talk about mitt romney's tax returns. we are covering all the bases today. but first let's take a look at some winners on the s&p 500.
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[♪...] connell: can mitt romney really win? a lot of people are really asking that question today. of course it depends on who you ask. but the latest polls are certainly favoring the president. we will talk about it. reuters reporting gm is still bleeding tens of thousands of dollars on the volt. now gm moments ago said no that is not true. we will try to get the bottom of all that in car land. and speaking of cars, nascar champion several times over, jimmie johnson in the hunt for another title and he's here in the studio to talk to dagen about all of that. coming up. it is now the bottom of the hour, let's go to stocks now with nicole as we do every 15 minutes. nicole: i'm looking forward to jimmie johnson.
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we're looking here at the shares which are under significant pressure down about 4% right now. that's because you have insiders some shareholders also some management able to sell today and so putting out this secondary here. up to 23 million shares. michael kors has done particularly well, up over 100% year to date. when you think of michael kors you think of apparel watches and accessories. they have done really well. they have easily surpassed analyst expectations for quarterly numbers. then gave outlook for same-store sales growth for north america and europe that looked pretty good. the stock today down about 4%. back to you. connell: you mentioned europe, the breaking news this hour is that the european markets are closing up for the day. none other than ashley webster recently back from yet another trip to europe. ashley: some profit taking more
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problems in greece even a fall in chinese imports all combining to create a less than really positive session this monday in europe. let's take a look at the closing bell. the ftse was meandering all day, finishing just slightly lower at the closing bell. the cac was down about quarter of a percent. essentially flat also on the dax in frankfurt. after getting a boost from last week's announcement by the ecb for unlimited bond purchases yes, europe faces another testing week. this wednesday germany's constitutional court will rule on new powers for the euro zone bailout fund the esm which critics argue illegally transfers authority from berlin to brussels. on the same day dutch voters will go to the polls and decide whether or not to back parties, an expansion of european powers and integration of a banking system. a lot on the line. let's not forget greece. greece's prime minister meeting with officials again today after failing to secure an agreement from his coalition partners on spending cuts of course required for the next bailout. meantime a report over the
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weekend suggests german chancellor merkel is willing to provide greece with more flexibility to ensure that that country does indeed stay in the euro. that is the the latest as the euro zone turns. connell: ashley webster, another critical week for europe. as dagen awaits jimmie johnson, a smart gentleman standing by to hold her over; right? dagen: yes, very smart. mitt romney is certainly in for a fight. today's presidential tracking poll from rasmussen reports puts the president ahead of mitt romney by 5 points. the president's highest rating in this poll since march. with more let's bring in former new york congressman and doug schoen former clinton advisor and fox news contributor. gentlemen, welcome to the both of you. >> thank you. dagen: i will start with you, john, does something big need to happen in mitt romney's favor for him to win this thing? or no? >> we have just been talking with with each other about exactly that. that he does need to do
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something to recast the whole race nationally. and doug and i were discussing the idea of maybe governor romney needs to buy the time and speak to the country and give a specific plan, instead of attacking obama, give a plan on what he's going to do specifically to turn the economy around. dagen: isn't that what the convention -- the convention was for doug? >> i thought the convention was only partially successful. they humanized governor romney partially. we got a lot of clint eastwood. but we didn't get specifics along the line on what john is suggesting. a national speech makes very good sense. dagen: you have the jobs report on friday, will romney in the coming weeks get more traction out of that because no one frankly expects this economy to come roaring back and people are worried about it heading in the other direction? john? >> dagen, yesterday he was on
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meet the press for an hour you run for years to become the nominee of a major party just to get the time to speak to america through a great show for meet the press. he sat there and said nothing for an hour. no specifics on how he would handle the economy differently. when david gregory asked him specifics on healthcare, taxes and all, he wouldn't answer or he said he adpreed with certain things -- he agreed with certain things that the president has done. how are you going to get elected running against a fairly unpopular president if you don't contrast yourself with him? i really wonder what this campaign that romney is running is all about. it's the most lethargic sleepy campaign in a country that's deteriorating. dagen: have people already decided by now though? many people argued that people had decided by mid september object who they will vote for -- mid september about who they will vote for. >> 85, 90 percent of america are
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locked in. maybe 10%, best case for romney 15% are persuadeable. bottom line, unless something happens to shake up the race, a bad performance by the president in one or more debates, by the way this race particularly given the electoral college is heading in the president's direction. dagen: do debates make-or-break? >> only make-or-break if there's an agregious error -- dagen: you can't be a shining star you only have to hope that your opponent messes up significantly. >> where have we seen mitt romney be a shining star? he had the convention speech. was that an a plus or b minus? dagen: you're of what party, john? >> john tells the truth. dagen: i know i'm just saying. >> i say it out of disappointment. >> voters are not convinced that president obama has the answers but they are saying the alternative at this point is not
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credible. dagen: thank you both. a reminder to catch doug and john live every monday on foxnews.com and every weekend on campaign insiders on fox news channel. another political story, if you want to call it that, larry flynt taking out ads in the washington post and usa today offering 1 million dollars for any evidence on mitt romney's tax returns and/or details of his bank accounts and offshore assets. this of course not the first time flint pulled a stunt like this -- flynt pulled a stunt like this. mr. flynt will be on with mr. imus on wednesday. connell: that should be well not dull as they say right? he set numerous records as nascar champion. we have been talking about it throughout the hour and he wants another lap around victory lane. jimmie johnson is here. he will talk with dagen in a few minutes. first though jeff flock with one automaker that did not take
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money, now ford creating new jobs, jeff? jeff: speaking of cars, take a look at that sign up there. no one has seen this before, flat rock assembly plant. used to be mazda ford plant, now it is all ford, 1200 new jobs. good story. stay tuned.
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robert: i'm robert gray with your fox business brief. drivers are feeling more pain at the pump. the "lundberg survey" has found gasoline prices jumped 8 cents over the past two weeks tch national average -- the national average for gallon of regular gas, $3.84 a gallon. customers of new line up of kindle fire can opt-out of advertisements after all but it will cost 15 bucks to do so. amazon has received backlash for saying consumers would be unable to avoid ads. japan airlines raising 8 1/2 billion dollars in its initial public offering. marks the world's second biggest ipo this year after facebook. the airline priced shares at 48 bucks a piece, the top end of the range. japan air set to make trading debut at the tokyo stock exchange on september 19th. that's the latest from fox business giving you the power to prosper. eering sfx: sounds of marching band and crowd cheering so, i'm walking down the street, sfx: sounds of marching band and crowd cheering and i found myself in the middle of this parade x:d
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honoring america's troops. sfx: sounds of marching band and crowd cheering which is actually in tquite fitting becauseade x:d geico has been serving e military for over 75 years. aawh no, look, i know this is about the troops and not about me. right, but i don't look like that. who can i write a letter to about this? geico. fifteen minutes could save you fifteen percent or more on car insurance. hey, bro. or engaging. conversations help us learn and grow. at wells fargo, we believe you can never underestimate the power of a conversation. it's this exchange of ideas that helps you move ahead with confidence. so when the conversation turns to your financial goals... turn to us. if you need anything else, let me know. [ female announcer ] wells fargo. together we'll go far. connell: latest developments on
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the gm story now. general motors has said reuters estimate out there of current loss for each volt sold is grossly wrong. this is kind of an interesting story just days after the automaker announced it sold a record number of volts last month, reuters came out with this report and has been saying that the company's losing nearly $50,000 on every volt car it sells. gm comes out again this hour and says reuters is flat wrong with that report. the reuters report also stated that gm is years away from any sort of profit on the volt. company plans to halt production out of detroit assembly plant for a month. that will begin next week. there's the gm stock price today down by 9 cents. dagen: the government's break even on that is $32 a share thereabouts. some new life for a ford plant in michigan as the automaker plans to use the facility to bring production back to the u.s. and make cars that will be
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sent to the european market. connell: let's join jeff flock at the ford plant. jeff: i remember being told when proposing the volt, it was said the last electric car we made we lost a couple billions how many billions do you expect we will lose on this one? oh well, you can answer. this is a cool car, though, this is a mustang, currently made at this plant here at flat rock michigan. it was a joint venture between mazda and ford. now ford has taken the whole thing over. mazda going back to japan. they are now going to make -- speaking of cars they are making money on, this is the ford fusion. they will make this here. it will be the new u.s. production home of the fusion. they are going to bring production back from mexico where this one was made in mexico, now they are bringing production back to the u.s. >> the u.s. production home of the fusion because we expect a lot of demand. jeff: can you make this car as
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efficiently and cheaply here in the u.s. as you can in mexico? >> well, one of the reasons we are putting it here is we have got a great workforce here, dedicated to quality and between our plant here and also mexico, we think we're going to make a big -- [inaudible]. jeff: you notice he didn't actually answer my question, if he can make it as cheaply here, you probably can't, but they have a good relationship with the uaw here guys and i think they feel like they can make money on this one by making it here in the u.s. and that's good news for everybody. connell: yeah. dagen: jeff, thank you very much for that. i said the break even on gm stock for us is a little over $30 a share. it is actually over 50. connell: yeah, 50 plus. -- jeff: yeah, 50 plus, sadly. connell: not getting there any time soon. aig did get there. dagen: exactly. connell: 2012 is on pace to be the best year for stocks since way back in 2003. dagen: here with the moves you need to be making right now, sandra smith has today's trade. sandra: you probably hear it from your taxi drivers or at your local bar, but everybody is
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talking about whether or not this rally is going to continue. here's the rally year to date, up about 15% for the year. we're at 1437. we had that sell off back in may. everybody said is now the end, but then the rally continued, and we are now sitting at the highest levels of the year, just down slightly today. so here's what we're looking at overall in this picture. s&p 500 up 14% this year. highest level in more than four years. could be -- right now we're on track for the best year since 2003. that's got everybody asking is this market top heavy at these levels? if i go back to the s&p 500, here's a big shocker for you guys, i'm going to put up let's say a three-year chart. morgan stanley just put out a note saying that the next move is down, and it's double digit percentages down. they are calling it for dagen and connell believe it or not 1214 for the s&p to finish the year. that would be a drop of 15% from where we are today. we also have some folks that are calling it to go up for the rest
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of the year and that will be on the trade throughout the day. connell: thanks. dagen: quarter after the hour, stocks now and every 15 minutes. nicole? nicole: a lot of names making news on wall street. the dow is up about 6 points, but you have some names that are certainly hitting key thresholds. names like apple and google for example hitting new 52 week highs. with apple i should cent myself -- i should correct myself and say it really hits all-time high as everybody anticipates iphone 5. go there's google. also look at kraft. jeffries and a few others stifel nicolaus saying you should be buying on a dip and you have bp also on the move to the upside here, up about 1/2%. broader market checks, nasdaq composite has actually pared some of the losses.
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it is now down about 1/3 of 1% after being down about 1/2%. back to you. connell: nicole petallides back at the top of the the hour. dagen: thank you nicole. and he's here, ready to talk racing, five time nascar champion jimmie johnson joins me next. are we there yet?
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connell: we're going to talk a little sports here for the next few minutes on markets now. dagen has her jimmie johnson interview after i give you some big sports headlines from a very busy weekend. how about peyton manning, away
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from the game for 611 days, has four surgeries and still plays like his old self last night. the new broncos quarterback throwing for 253 yards and a couple touchdowns. denver beats roethlisberger and pittsburgh by a score of 31 to 19 last night. the other huge headline in sports was yesterday in tennis, the women's u.s. open, the final was yesterday and serena williams, great match, rallies, comes back in the third set, down three games against the number one seed and this was her fourth serena's fourth u.s. open title, 15th grand slam overall. look at that. big big win. the men's final by the way today, this afternoon. dagen? dagen: thank you, connell. you want to talk about not only a great athlete but mental toughness, serena williams and my next guest. he's a five time nascar sprint cup champion, winning the championship an unprecedented five years in a row.
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once again jimmie johnson is racing for another, ninth time he's in the chase. nascar's play off series starts this coming weekend in chicago. he also has a new book out called "on the road." he joins us now. >> how are you? >> how are you? >> good. dagen: how do you get yourself ready mentally to race for the championship? what do you do? >> well, i mean, a lot of it depends on how prepared i am as an individual and also the team, and we feel like as a whole we're as good as we've been in quite some time. even through some of our later championship years. we have a lot of confidence in that. but at the same time, you know, in sports, anything can and will happen, and we know that the race for the chase is really tough. we have to take on each event as it comes. this first kind of challenge is this weekend in chicago. which has been a great racetrack for our team. that style of racetrack our car has been very fast. leading into it, i have as few butterflies as you could ask for, but i know once we get
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there -- dagen: you get butterflies? >> oh, yeah. dagen: days ahead or the day of the race? >> i find before i get in the car it is the worst time. once the helmet is on and i get in the car, at that point i'm reacting and driving and doing my job i love and know so well. it is the time when i'm out of the car that my mind can think about things, it gets me. dagen: how is today different for you mentally emotionally professionally than it was when you were racing for your first championship? >> a lot has changed professionally and personally. even down time, i mean not winning last year was very helpful and very learning experience for myself and the team. dagen: helpful how? >> well, the -- i feel that i learn more in down times than i do when things are going right. you know, when you are doing well, everybody is patting you on the back and you don't look as deep as you probably should to work on things. then after a failure and not accomplishing what you want, you know, i always look deeper as to why and learn from that. dagen: what about this year?
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you have got all four hendrick cars in the chase. pretty amazing stuff. kasey kahne jr. and jeff gordon, jeff making it incredible victory for him in terms of making the chase over the weekend and then you. does that change how you race? would you rather race your teammates because again you could get into potentially tough situations when you are up against a teammate on the track and you are racing for the championship? >> it is tough. and i've been in that position with my teammates in the past. and you know, it's easy in some ways because i'm around those drivers, i know what their race cars have in them for set ups and i know those three drivers so well, i can almost pick apart their strengths and weaknesses and try to work on a strategy myself, but you know the hard part is working on those mental -- the things that you do in competition to beat your -- to beat the opponent, it is hard to look at your friends and your teammates that way and think not bad things about them but aggressive things towards them
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to go out there. dagen: what you do off the track is as we were talking about is mentally important because when you were racing for your fifth championship -- [inaudible] -- in press conferences it seemed like you were highlighting the pressure that would be on him for him to win. and again, like how does that play into when you're dealing with your teammates? would you still do the same thing? >> it is a different game. those are the little subtleties that make it different. i mean, at the end of the day, i'm just so happy for hendrick motor sports. we have 550 employees there that build race cars for our four teams. it is a big operation with big sponsorship dollars involved. my sponsor lowe's, i want to do the best job i can for them. to have, you know, a third of the chase field out of our building, out of our operation just does a lot for everybody involved. yeah it is tough and there are some subtleties to it that we all have to navigate. at the end of the day if we get one of these four cars to the head table in las vegas now
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where the banquet is, it's a good deal. dagen: is there anything -- one last thing jimmie, anything you don't have professionally or personally that you want right now? >> it's hard to complain. life is really good. i'm one that doesn't fall back on the past. i look forward, and i want to accomplish more. you know, if i'm getting up and going to work every day, i'm going to apply myself and want the best. i want another championship and next year will be the same. then personally i have a 2-year-old daughter and just loving life and my wife and i are very blessed and having a great time with that. dagen: who are you worried about in the chase driver wise? >> it was year it was a tie. this year it is really everybody. teams have been streaking including ourselves. so over the last --
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cheryl: hello everybody. i am cheryl casone. dennis: and i am dennis kneale. the union challenge facing obama confident and chicago mayor. cheryl: international franchising now charging the president obama is killing small business jobs. we will talk with both the chairman and ceo on why they think mitt romney can do all of this letter. dennis: and paying $15 to get rid of the ads on the new kindle
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fire. cheryl: first, as we always do, time for stocks now. it looks like we are in a tight trading range. nicole: that is right. we had made it to that weak jobs report. we gained 215-point last week. today we are really holding on to those gains. the dow is up six-point right now. the nasdaq down about one third of 1%. i also want to look at time warner and viacom. the market has been so intense and so competitive for streaming video, cable, movies, how to get them, netflix. time warner and viacom have talked about the competition. they are teaming up. you can access the television
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shows. dennis: thank you very much, nicole. school is out for chicago's 400,000 public school students. teachers walking the picket line instead of walking the hallways. this is a first time in 25 years. >> we will walk the picket line. we will talk with parents. we will talk with claire g. we will demand a fair contract today. >> i am disappointed it came to this point. this is a strike of choice. dennis: we are joined by christina rasmussen. thank you for being with us. in this strike, you know we have seen a lot of other big clashes over big deficits, here it seems like the actual finances are not what is at issue. >> the union wants two things.
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one, more money and lots of it. a 30% raise. they are strongly opposed to merit pay getting bad teachers out of the classroom. by going to strike, it is clear they are putting their members ahead of chicago kids who are out on the street right now. dennis: if this was a business, chicago is not doing a very good job. we have a 40% dropout rate. teachers are in a median salary of over $70,000 in a city with 11% unemployment. why go on strike? the city offered 16% over three years. >> exactly. a $400 million package, even that was not enough. four out of ten kids who walk
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into a chicago public high school will not graduate. that is a 60% rate. unfortunately, you see the teachers union demanding more and more. since when do we pay more for failure. i think chicago kids deserve better. there is an opportunity for the mayor to demand transformational changes. dennis: were you at all surprised that the teachers went on strike? >> it is ironic to see two traditional allies put against each other. the harsh reality is that the city is broke just like the state of illinois is broke. there is no more money to hand around. we had an unemployment rate in the city upwards of 11%. unfortunately not they cannot just face the margins anymore.
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that is why you see real tension here. dennis: the city has 30,000 teachers. we just saw and $83 billion unfunded pension liability. tensions and cutbacks are not even part of this negotiation, aren't they? >> it is a ticking time bomb. we know we will have more crisis coming. that is why the mayor should stay strong and as for the transformational changes. getting rid of the cap on charter schools, better utilization of online learning. those are the changes we need to see. dennis: you mentioned that charter schools and the kids and a charter school system are actually in school today because those teachers are not striking. think you for being with us, kristina rasmussen. >> thank you.
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cheryl: big problems for small business. the international franchise administration says things will only get worse if resident obama's tax plans go into place this year. gentlemen, thank you for being here. you wrote a letter to the president. here is what you said. "under your proposal the taxes of many members will be dramatically increased with an 80% of amber's father taxes up out of, partnerships, sole proprietorship's, did the president respond to your concerns? >> no, cheryl. first and foremost, thank you for having us on. we are scheduled to grow this year between 1.5-2%. we could be growing much quicker if we had certainty around future tax rates that are set to expire at the end of this year. it has been a very difficult
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environment for us. this week the storm to capitol hill tomorrow to try to cut you know, put a sense of urgency to what our industry is going to. cheryl: i was looking at data and basically, zero jobs created in the month of august. small business jobs zero. small businesses will not expand before the election. a big piece of the small business part is the franchise that you used to run at duncan and you now oversee. what do you say to the owners and the president's? >> it is an interesting dilemma that we have. the city on the sidelines because of a number of banks that are affecting them. the attack think that steve mentioned is one.
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the uncertainty of all that is in front of us is causing people to hesitate and wait because before they invest their crystal money and continue to grow and build that american dream that franchising provides, they cannot do it with uncertainty. it is just not worth the risk. you need to have more certainty so these folks can't expand. cheryl: understood. the volume of small business loans and the data, actually, it is the best data we have seen. why are they not that concerned about taxes if they have money? >> credit access has improved. we still have a $1.8 million lending shortfall. if we can meet that forecasted demand, we could create 100,000 new jobs in america today.
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didn't you throw and that impending cost of healthcare. you ask yourself how much can the small business community take when we are dealing with 8.1% unemployment. you have 23 million people unemployed, underemployed, working part time or have given up looking for work. you put this all in the aggregate and that is not a prescription for growth. cheryl: this is surprising. all of that data that we are seeing may weaken the president chances of reelection. jon, you have been at this for a long time. >> you are aging me, cheryl. i think it does create an unfortunate position for our
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sitting president. it is really about the small business person who wants to grow and create jobs. they each employ 25-30 people. they have commitment to build another 15-2000 stores. those are all jobs. our friends over at arby's have the same situation on hand. before they invest their personal money and go to the banks and, yes, karen mills has been much better over the lending environment, but there is still a shortfall. there is uncertainty that causes them to hold off. that is what we worry about the most. the american dream is to own your own business and create growth. when they cannot do that it just affects the sitting president, of course. cheryl: well said.
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thank you to both of you. gentlemen, thank you very much. >> thank you. dennis: for the first time since your tax money bailed out aig, the government stake in the money will fall below 50%. cheryl: gasoline prices are up, but things are stabilizing at the pump. we will be live at the cme with what has traders pumped up right now. dennis: and why ryan seacrest is singing the blues in the housing market. ♪ [ male announcer ] what if you had thermal night-vision goggles, like in a special opsission?
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dennis: 15 minutes past the hour. we have stocks every 15 minutes. nicole: last week we talked about an infrastructure project underway over in china. $150 billion project. with that brought some optimism to so many companies including iron and metal -based companies, coal and such. when you take a look at them today, they are up. obviously all of this is on the promise of more demand coming out of china.
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that is the hopes coming out of china. then when you look at our markets here at home, banks are doing well, retailers have out aeros. the dow is up about five points. the nasdaq and s&p 500 slightly lower. back to you. dennis: thank you, nicole. time to make money with charles payne. charles: the last two weeks this stock is up like a billion%. i love when a stock is downgraded and it still goes up. i like a company called -- it has been around since 1902. they missed the street the last two quarters. the stock has been hammered. when does a stock oversell? i think the stock is oversold. they have stayed steady for the last 30 days. this is a company that will be
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big-time empowered. they are doing generation of electricity. refineries. you can see the stock, it looks like it is trying to turn here. the stock is down, rightfully. the execution has been bad. now the pe is that a 13. cheryl: we do see a quiet, dramatic drop in the stock price. charles: that is it. listen, when you have two bad earnings report and a row, that is what kind of happened. now it is to the point where it is starting to climb. that is the risk with this particular idea. for me, it is a true value idea. i think these guys are greatly positioned. despite the recent, you know, problems with management, i think the stock will do well.
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cheryl: lufkin. let's take a breather today. oil is taking a breather today. phil flynn of price futures group has his eye on energy at the cme. >> they keep bouncing off that 200 day average. they cannot seem to get above it. we know we are talking a lot about a stimulus. that definitely is slowing down the oil market today. the other thing, of course, is saudia arabia. they are telling the european customers that they will continue to send the same amount of oil they did a month ago. in other words, saudia arabia will continue to pump a lot of oil. it will continue to put downward pressure on us. we need downward pressure. our futures still coming back up today. refineries down in the gulf coast having real trouble
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getting back online. it will continue. isaac continues to give us the pain at the gas pump. back to you. cheryl: thank you. dennis: president obama raising more money last month then mitt romney. cheryl: here is a question for you, is a good business? why the government is choosing to sell a big stake in aig two months before the election. the first, as we go to break, take a look at the world currencies and how they are faring against the u.s. dollar. we are at $1.27. ♪ copd makes it hard to breathe,
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>> welcome back to fox business at 23 minutes past the hour i am going green with your fox news and it. the mayor of trenton, new jersey, has been arrested. his brother and campaign supporter were also arrested. rescue workers and residents
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living in the area of the twin towers on nine elevenths may have gotten thousands of types of cancer good the move will allow those affected to access more than $4 million compensation fund. peyton manning made his return last night after missing last season. he made his debut as the denver broncos quarterback. he threw for 250 yards. and that is your fox news minute. back to cheryl. cheryl: thank you very much. the treasury department this building to unload the rest of its aig stake. it is the timing that is raising eyebrows. >> let's go through the numbers. $44.5 billion is what the government has gotten back out of this cash investment. today, rather yesterday,
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announced a new aig stock sale. treasury will still hold $5.3 billion. the total was $161 billion. this is the biggest most controversial bailout. what about the timing? is a president trying to cut back? here is what the treasury department is telling fox business, essentially, we decide, not the white house. we sell what we think the market can bear it. twenty-eight dollars more. aig has been selling around $33. the plus side to this is the government, the white house, could take the federal reserve will the the leader. will taxpayers see a plus? will we make money?
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likely the answer is no because fannie mae and freddie mac still owe billions of dollars. also, gm still owes 27 billion. allied financial still owes. will we see that money back in the future, that is the question. cheryl: what is interesting about your story is the treasury department denied this. i'd assume they are very sensitive with the election close. >> i just got the sense they want to set the record straight. it is a lockup period. they have to time it right. they still own shares in aig. they do not want to flood the
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market. dennis: that is really something. i would be surprised if they were not talking treasury. cheryl: elizabeth macdonald. dennis: do not count on ben bernanke and company. why the fed will not use at thursday's meeting. cheryl: plus, how you can turn off those ads on your kindle. it will cost you to do this. first, a look at today's smb winners and losers. ♪
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cheryl: it is 30 minutes past the hour. stocks now with nicole petallides. not a lot of movement today. it have to be this wait and see mode. nicole: last week you are waiting on the jobs report. wednesday and thursday you will hear from them. we had to under 15 points of game last week for the dow. we are taking a little bit of a breather here. when you see that thou virtually flat, there are names to talk about. some are moderate your highs and some are all-time highs. urban outfitters, and not the retailers have surprised us. that's far, regardless of a tough economy, people still love their pets exponentially. pets mart up 1.1%. amazon as well. of course the kindle fire has
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been stealing the show lately. we do have a lot of names to speak of. back to you. dennis: thank you, nicole. traders praying that friday's dismal jobs report was enough to get the fed to act. our next guest does not think so. kathy boyle joins us now. tank you for being with us, kathy. you state the fed will not use. why limit the fed ease? >> have we added any more jobs in the last couple of rounds? no. all it does is have wall street money. main street is not helping jobs, not helping the economy's. dennis: at least somewhere in --
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at least someone somewhere is making money. >> we need to stimulate jobs and the actual business owners. they are afraid to hire people. we have underfunded pensions. underfunded healthcare liabilities. the small business owner is scared to hire people. we have to get some of the uncertainty out of the way. dennis: do you think we would have done visibly worse as an economy if the fed had not have done qe1 and qe2? >> market stays up, market goes down, people get worried they see their 401(k)s go down. yes, if you keep the stock market up, people feel a little bit better. dennis: we just on friday, i think it was, hit a five-year high on the stock market. a lot of people perish.
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what happened to stocks if the fed on thursday does not take new measures to soak up the economy? >> that is in. the action is based in. without it, we are going down. the volatility will increase. dennis: if the fed comes out on thursday with some new extra measure, stocks do almost nothing. you would not go so far to advise planned to sell out of their non-retirement account stocks or anything? >> i want to hedge a risk. the rule of losses. you lose 40 you need 80. loose 50, you need 100. people are not back where they were in 2007. if you cannot take that
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volatility, hedge. hedge. add some. your retirement money does not pay capital gains. dennis: what should the fed to? >> i don't think the fed should do anything. dennis: wow. okay. thank you. kathy boyle. cheryl: kathy boyle is always a bear. that did not take long. after days of unveiling the new kindle. how amazon is doing. dennis: french president -- tax the rich is what he is doing. the reaction i had. first, let's take a look at the ten year treasury. ♪
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>> i am tracy byrnes with your fox business brief. cutting an additional 1000 jobs by the end of the year. this is part of the restructuring plan. they have already shed positions from its work force since the of the year. the housing market may be on the mend, but remained far from normal. that is according to a report from the "wall street journal." home prices pushed their strongest gains in six years through in the first half of
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2012. that is a sign that the housing market and more states has hit bottom. they say hitting bottom should not be confused with a full on recovery. a taste of coca-cola. the world largest soft drink maker is teaming up with a local company to opening a bottling facility in burma. that is the latest from the fox business network. giving you the power to prosper. ♪ a little bit more vanilla? this is great! [ male announcer ] at humana, we believe there's never been a better time to share your passions... because the results... are you having fun doing this? yeah. that's a very nice cake! [ male announcer ] well, you can't beat them. [ giggles ] ohh! you got something huh? whoa... [ male announcer ] humana understands the value of spending time together that's a lot of work getting that one in! let's go see the birdies. [ male announcer ] one on one, sharing what you know. let's do it grandpa. that's why humana agents will sit down with you, to listen and understand what's important to you. it's how we help you choose
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identifying another component that is actually responsible and improving things such as yield. they start the validation of our gene. >> when you talk about validation, this is a 10-year-old company. you are working with companies like monsanto. >> they introduced our genes into a target group such as corn, soybeans, and they evaluate our performance compared to the same crop without our genes. >> right now in the united states they are testing crops that have part of your team component to see if it will increase yield. >> yes. we arty announced that some --
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yes. >> there was a great article in national geographic that talked about the miracles and modern agriculture. we have actually doubled crop yield in the last 20 years. we have to double crop yield again. is that possible? >> i do not think we have any other choice. there is pressure on the supply. i believe, yes, with new technology, new approach, i think we can achieve it. >> what is going on, as far as, your development in yielding rice crops? >> we are focusing on that and an ongoing relationship. this is what we are trying to do. identify genes and use them in other ways to improve
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performance. >> you traded on the stock exchange. is that where i would invest? >> if our product would be the successful one and that is our expectation, -- >> you get paid a commission. >> our long-term loyalty has been for that. >> the ceo was telling us they are not only partnering with seed companies from the united states, their partnering with india, as well as, china. back to you. cheryl: adam shapiro. thank you very much. let's talk a little bit about the global markets.
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the fed next meeting is thursday. ashley webster is here now. you get this, it is like saying the pope. they are just not going to meet their obligations. it is impossible to believe that government can get it together to meet their timelines. ashley: i think a lot of people realize that. they have to fulfill, how are you going to make 11 billion euros worth of cuts and where is it going to come from? the greek prime minister cannot get in agreement with his own coalition. professors, teachers, right now, university protesters, they are protesting right now. if you lost half of your salary
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in two years, it is very difficult. cheryl: if i was increase, i would be happy to have a job. ashley: at some point you cannot pay your bills. what do you do? and a lot of are leaving. last week we had police fighting bullies. there was a police protest and they sent a police unit to monitor the protests. huge pay cuts are in the future. it is not easy. it is very difficult. angela oracle said i am more open to more flexibilities in order to keep greece in the euro zone. reality is, how long can this go on? cheryl: if that's par for her, ashley? ashley: politically, probably not. she also mentioned this week is interesting again for the euro zone. we have dutch elections on
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wednesday. dutch voters could be backing parties that are very anti. then we have the ruling on wednesday on whether that esm, the bailout fund, is constitutional. but again, as always, on the play. cheryl: the euro is that $1.27. ashley: the fed will go with qe3. cheryl: ashley, thank you. ashley: you're welcome. dennis: it is quarter till. every 15 minutes we have stocks. nicole: fusion fanatics certainly. ford now is having to add workers to make more fusions. they are adding 1200 workers. this is to a detroit factory. it is basically a sign of confidence that the fusion is a big seller.
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the president told workers at a flat rock plant there that the market that they have seen for the fusion is going to times faster than the rest of the auto industry. when you talk about a hot car, the new fusion actually goes on sale this fall. they have gone so well with the pickup trucks. there is a look forward. right now up .25%. back to you. cheryl: thank you very much. we will see you 40 minutes from now. the united states has the highest u.s. corporate tax rate. presidential candidates are tackling these taxes with different plans. scott joins me now with what he thinks of old candidate. i want to start with the issue of this 35%. each candidate says, in theory, they will bring it down.
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obama wants 28% and romney wants 25%'s. >> i have to give the edge to mr. romney. he also wants to change the structure of our international tax system which would make the u.s. companies more competitive in the global economy and, i think, make the u.s. economy more competitive overall. cheryl: i mentioned competitive as i was talking to you. we are now number seven. what does that say to you? >> i think we are flipping in a lot of areas. the corporate tax really is one of the areas that we have to fix. we have a nieman marcus tax system. they are making themselves more competitive in high tax countries like united states.
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we need to fix the structure of our system. nicole here should be to make the economies more global. cheryl: i want to show our viewers something very interesting. we are taking a look of companies that are leaving the united states. i was shocked at where they are going. aion, the company leaving in april. going to the uk. eat-in left cleveland ohio. and scope left dallas and went to the uk. i am thinking to myself, first and foremost, ireland, really? this is why these companies are leaving. >> it is a no-brainer, cheryl. this is why countries like the uk have cut their right tax rate and changed their system. they were saying a lot of their
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companies leave abroad. we have got to get back into the game. we are simply losing ground by standing still, i doing nothing to quiet our corporate tax rate. cheryl: i will say this, scott, mr. romney does have this territorial issue. scott hodge, thank you very much. >> you bet. thank you. cheryl: if you missed the biggest stock rally in nine years, you are not alone. sandra smith is ahead on what you should do right now. dennis: and white rind secrest is singing the blues in the housing market. ♪ hey! did you know that honey nut cheerios
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cheryl: we are getting some breaking news in the market. chicago mayor speaking right now. >> we need to finish the job. given all the work that has gone in. we need to make sure that our kids get the education they need. that is essential for them to have a bright and positive future. the two issues come down to, as you know, the teacher evaluation and, also, what is called about, basically, the issue of which
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teachers are in the classroom and to have the control. what i mean by that is, whether the local principal at the school hires, or it comes as a dictate out of downtown from either the union editorship or cps. we have 90 plus schools that are on the state on a roll. i visited a number of them. the question is, should sean jackson and spencer pick the teacher. that principle in that building? or should downtown pick him? i do believe i should pick him. i do not believe -- dennis: that was a live press conference in chicago. let's bring back rosina
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rasmussen. it does not sound, christina, that they are getting any closer to some kind of settlement. it is underfunded pension liability of that entire state of $83 billion. >> it is shocking and quite frankly disappointing. they are trying to protect bad teachers at the expense of rewarding great teachers. they are probably close on matters of compensation. this is on one hand hopeful that they can still push for more reform from the cps side, but also discouraging that they are giving away on some of those other points. dennis: this is not over any attempt at all to cut the tensions. that is not the issue.
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it is teacher evaluations and then when you fire a teacher at the school who has the power to rehire. the union wants that control? >> they absolutely want that control. think about who is not in that room negotiating right now. it is kids and parents. what about the kids deciding what the best teachers are for their school and rewarding the ones who are doing a fabulous job. you mentioned pensions, you are absolutely right. it is about seven hundred dollars. it is only about 60% funded. they are ignoring the elephant in the room. dennis: and the mayor pulled out the heavy guns. thank you very much for hanging around for us, christina rasmussen. we appreciate it. cheryl: we will continue to monitor that.
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gas prices remain high across the country. could there be a little relief in sight looks back. dennis: up next, lori rothman and melissa francis. keep it here on fox business. ♪
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